0
Business Process & Data Analysis on Peloton
Interactive Inc.
by
Derek Osawaguan Ahamioje
1
Table of Contents
PART 1: BUSINESS PROCESS ANALYSIS
INTRODUCTION ............................................................................................................................................ 3
.................................................................................................................................................................. 3
0.1 Background of Peloton ....................................................................................................................... 3
0.2 Strategic Goals .................................................................................................................................... 3
0.3 Business Model................................................................................................................................... 4
1 STRATEGIC ANALYSIS ........................................................................................................................... 7
1.1 STRENGTHS ......................................................................................................................................... 7
1.2 WEAKNESSES ...................................................................................................................................... 8
1.3 OPPORTUNITIES ................................................................................................................................. 9
1.4 THREATS ........................................................................................................................................... 10
2. INVESTIGATING SITUATION: PRIOR RESEARCH ................................................................................. 12
3 STAKEHOLDERS ANALYSIS .................................................................................................................. 14
4 NEEDS ANALYSIS ................................................................................................................................. 16
5 BUSINESS PROCESS MODELLING ....................................................................................................... 18
6 DEFINING SOLUTION .......................................................................................................................... 20
7 COMMENTS, OBSERVATIONS AND RECOMMENDATIONS ............................................................... 22
7.1 Comments and Observations ..................................................................................................... 22
7.2 Recommendations ..................................................................................................................... 22
INTRODUCTION .......................................................................................................................................... 23
Research Questions ................................................................................................................................ 23
8 BUSINESS INSIGHT .............................................................................................................................. 24
8.1 Total output ................................................................................................................................ 24
8.2 Live On Demand Performance review. ................................................................................... 27
8.3 Impact of Instructors and Fitness Discipline ............................................................................. 29
8.4 Impact of workout dates and times .......................................................................................... 30
9 Comments, Observations and Recommendations ............................................................................ 33
9.1 Comments, Observations ........................................................................................................... 33
9.2 Recommendations ..................................................................................................................... 33
10 CONCLUSIONS ................................................................................................................................ 34
REFERENCE .................................................................................................................................................. 35
2
Table of Figures
FIGURE 1INCOME STATEMENT OF PELOTON FROM 2020 TO 2022 (SOURCE: PELOTON
INTERACTIVE, 2023) .................................................................................................... 5
FIGURE 2: CASH FLOW FROM 2020 TO 2022 ........................................................................ 6
FIGURE 3: SWOT ANALYSIS OF PELOTON .......................................................................... 11
FIGURE 4: POWER INTEREST GRID OF STAKEHOLDERS ........................................................ 15
FIGURE 5: PELOTON SUBSCRIBER GROWTH EBBS (RICHTER, 2022) .................................... 17
FIGURE 6: THE PELOTON BUSINESS MODEL (SOURCE: PEREIRA, (2023))............................. 19
FIGURE 7: PROPOSED BUSINESS CANVAS MODEL ............................................................... 21
FIGURE 8: SHOWING THE TOTAL OUTPUT, CALORIE BURNED AND WORKOUT FOR THREE YEARS.
................................................................................................................................ 24
FIGURE 9: TOTAL OUTPUT SPREAD PER PERIOD .................................................................. 24
FIGURE 10: HEATMAP AND REGRESSION GRAPH ................................................................. 25
FIGURE 11: TOTAL OUTPUT FIRST KEY INFLUENCER ............................................................ 26
FIGURE 12: TOTAL OUTPUT SECOND KEY INFLUENCER ........................................................ 26
FIGURE 13: TOTAL OUTPUT THIRD KEY INFLUENCER ........................................................... 26
FIGURE 14: TOTAL OUTPUT AND CALORIES BURNED BY LIVE ON-DEMAND .......................... 27
FIGURE 15: LIVE ON-DEMAND INFLUENCER 1 ..................................................................... 28
FIGURE 16: LIVE ON-DEMAND INFLUENCER 2 ..................................................................... 28
FIGURE 17: LIVE ON-DEMAND INFLUENCER 3 ..................................................................... 28
FIGURE 18: INSTRUCTORS RATING PER TOTAL OUTPUT ....................................................... 29
FIGURE 19: CALORIES BURNED PER FITNESS DISCIPLINE .................................................... 30
FIGURE 20: TOTAL OUTPUT PER WORKOUT DAY OF THE WEEK ............................................. 31
FIGURE 21: CALORIES BURNED PER WORKOUT DAY OF THE WEEK ........................................ 31
FIGURE 22: TOTAL WORKOUT BY WORKOUT TIME ................................................................ 32
3
PART 1: BUSINESS PROCESS ANALYSIS
INTRODUCTION
0.1 Background of Peloton
Peloton, an American hardware development company, is a leader in fitness innovation,
offering comprehensive, instructor-led workouts at home. Founded in 2012 by CEO John
Foley, the company has evolved into a leading fitness brand, offering unlimited live-on-
demand sessions. With over 5.9 million subscribers as of June 2021, Peloton stands out
from other at-home fitness brands. Investors have invested around $994 million in the
company, focusing on product innovation and live training. The company employs over
2,000 people, including the CEO, CFO, and COO, and has a board of advisors, legal
operations, commerce, diversity, public policy, and directors. Peloton's global
communications staff handle messaging to investors and customer relations
stakeholders. The company's success is attributed to its interactive software, powerful
instructors, and vibrant community.
0.2 Strategic Goals
The Peloton interactive has as its mission statement, to inspire individuals to be the
greatest versions of themselves wherever they are at any time, using technology and
design to connect the globe via fitness (“PELOTON 2021 ESG REPORT,” 2021), by
providing individuals with intense exercise in immersive, easily accessible, reasonably
priced, and effective methods. However, in McDon, D., & Nankya, Y. (2021) the following
deductions can be made on the strategic plans of Peloton interactive.
I. To consistently add new subscribers.
II. To provide interactive elements that improve ties within the community.
III. To provide the greatest fitness material available.
IV. Creating novel items and modernising existing ones to meet industry requirements.
V. And to increase the company's market share and geographic reach.
4
0.3 Business Model
Peloton is a fitness brand that caters to celebrities, tech-savvy people, and middle-class
to upper-class fitness fanatics. The company provides social features, convenience,
improved customer experience, instructor-led exercises, and interactive sessions. Its
business model is capture in key segments such as
Value propositions, Channels, Customer segments, Revenue streams, Key activities, Key
partners, and cost structure.
Peloton is a fitness brand that offers a sense of belonging, improved customer
experience, and more successful workouts. It operates through physical studios,
websites, apps, social media, and customer connections. Peloton's revenue streams
include sales of technology, clothing, accessories, and fitness equipment, as well as
monthly membership plans. Key resources include fitness instructors, personnel, media
partnerships, equipment, manufacturing alliances, and infrastructure. The brand's main
activities include product development, research and development, manufacturing,
delivery, marketing, branding, content production, sales, customer support, fitness
courses, celebrity classes, and unique events. Peloton's cost structure includes staff and
instructor salaries, administrative expenses, physical infrastructure maintenance,
branding, marketing, and shipping.
The manufacturer of fitness subscriptions and high-end exercise announce 500 jobs
losses lost as part of its fourth round of layoffs in 2021. The layoffs were a part of a
broader reorganisation that also involves outsourcing manufacturing, 50% less member
services, and contracting out last-mile deliveries to third parties. In Q3 2021, Peloton's
revenue dropped by around 30% while net membership increases were almost non-
existent. Figures 1 and 2, respectively, display the cash flow and the income statement
(Peloton Interactive, Inc. (PTON)., 2023).
5
Figure 1Income statement of Peloton from 2020 to 2022 (Source: Peloton Interactive, 2023)
6
Figure 2: Cash flow from 2020 to 2022
7
1 STRATEGIC ANALYSIS
Based on the strategic plans earlier mentioned, analysing the current state of Peloton will
provide a vivid picture of the health of the organisations and the area where improvement
is required. Among the several methods for assessing the strategic analysis of an
organisation, the SWOT analysis has shown to cover both the external and internal
factors. Figure 4 is a summary of SWOT analysis of Peloton.
SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis
1.1 STRENGTHS
i. One stop product ecosystem: The company that offers a comprehensive
product ecosystem, such as the cutting-edge Peloton Bike and Tread, which
are premium exercise equipment.
ii. Innovative User-inclined Technology: The company is known for its
innovation and user-centric technology, investing in research and
development, and utilizing advanced software and data analytics for
personalized recommendations.
iii. Brand Identity: Peloton's brand identity and community engagement are key
strengths, promoting connected fitness, empowerment, and community
through virtual classes, social media, live leaderboard rankings, and virtual
high-fives.
iv. Talented team of instructors: Peloton's diverse team of world-class fitness
experts and celebrity instructors, combined with a strong social media
presence, provides a well-rounded fitness experience.
v. Subscription-based revenue model: Peloton's financial success is attributed
to its stable revenue stream, predictable business model, and high customer
retention rate, bolstering its competitive position and sustainable growth.
vi. Aggressive marketing and strategic partnerships: The company has
successfully established its brand through a multichannel marketing approach
that makes use of influencer relationships, internet advertising, social media,
luxury hotels, and wellness initiatives.
8
vii. Diversification: Another asset of Peloton has been its aggressive plan for
worldwide development, which has helped the business diversify its sources of
income and reduce the dangers involved with depending too much on any one
market. Complementary products have been launched by the firm, like Peloton
App, which enables customers to access the digital platform without having to
purchase Peloton equipment.
1.2 WEAKNESSES
The fitness equipment company faces several weaknesses, including.
i. High initial costs
ii. Limited market penetration initiated by pricing strategy.
iii. Heavy dependence on subscription revenue,
iv. Product reliability and safety concerns,
v. Heavy reliance on instructor personalities,
vi. Limited physical presence, and
vii. Evolving market landscape.
The high initial cost of Peloton's premium products, such as the Peloton Bike, Tread, and
Bike+, reduces their availability to customers on a tight budget. This pricing approach
may also prevent a wider range of consumers from entering the market, such as price-
conscious buyers and those who favour less expensive options.
Peloton's subscription-based revenue model is susceptible to changes in client retention
rates and recessions, making it vulnerable to decreased subscription renewals. Peloton
must diversify its revenue sources and look at non-subscription revenue streams to
reduce this risk.
The restricted range of cardio-focused workouts offered by Peloton may put off
prospective consumers looking for a more varied training experience. Industry rivals with
more varied fitness offerings include boutique fitness studios and conventional gyms.
Product reliability and safety concerns have led to product recalls (Schultz, 2021a) and
negative publicity, undermining customer confidence and harming Peloton's brand. To
9
continue to preserve its reputation and protect its market position, Peloton must
guarantee the safety and dependability of its products.
Lastly, boutique studios, conventional fitness centres, and newcomers to the virtual
fitness market compete with Peloton. Peloton must constantly develop and adjust to
changing market conditions, changing consumer preferences, and remaining flexible and
responsive.
1.3 OPPORTUNITIES
As a fitness company, Peloton has several opportunities to capitalize on as the fitness
landscape evolves.
i. Market Expansion and Penetration: It can expand its global presence by
going after unexplored areas of Asia, Europe, and other continents, and
customising its products to fit a wide range of global consumers.
ii. Tactical Alliances: Gyms, celebrities, and local fitness influencers may help
expand brand recognition and market penetration into new areas.
iii. Diversification and innovations: Peloton can expand its fitness equipment
range by introducing rowing machines, ellipticals, and strength training
equipment, and explore wearable fitness technology for seamless integration
with its digital platform.
iv. Expanding Digital Content Library: Expanding the digital content library of
workout classes, incorporating wellness and mindfulness content, and offering
new disciplines and difficulty levels can enhance customer engagement and
loyalty.
v. Special Events: Live events like Peloton-branded fitness festivals and
wellness retreats can strengthen community and brand loyalty, while exclusive
experiences and retention incentives can enhance Peloton membership value.
vi. Leveraging Data Analytics: By analysing user behaviour and workout
performance, Peloton can improve its capabilities, improving contentment,
rates of retention, and a competitive advantage in the fitness industry.
10
1.4 THREATS
Peloton, a fitness company, faces several challenges in the market due to evolving
consumer preferences and intensifying competition.
i. Intense Competition: The fitness market faces intense competition from
established brands and startups, with traditional clubs and boutique studios
entering the digital space, potentially leading to pricing pressures and
increased costs.
ii. Evolving consumer preferences: Peloton must adapt to evolving consumer
preferences and trends to stay relevant and appealing, as failure to do so could
result in reduced customer engagement and potential competitor defection.
iii. Regulatory Challenges: Peloton faces regulatory challenges in multiple areas
worldwide, including complex and costly adherence to regional regulations
concerning consumer protection, product safety, data privacy, and intellectual
property.
iv. Supply chain disruptions and manufacturing challenges: can impact the
timely delivery of products and affect Peloton's brand reputation.
v. Technology dangers and reliance on electronic infrastructure: can also
pose challenges. Cyber-attacks, data breaches, and system outages can lead
to legal consequences, undermine consumer trust, and jeopardise user
information.
vi. Economic downturns and consumer spending habits: potentially affect
Peloton's attempts to attract new customers and maintain their loyalty levels.
vii. Social media backlash and bad press may spread swiftly and have serious
repercussions for companies. Peloton must respond to such incidents and
address customer concerns to manage and mitigate these threats.
11
PELOTON INTERACTIVE SWOT ANALYSIS
STRENGTH:
WEAKNESS:
One stop product ecosystem
Innovative User-inclined Technology
Brand Identity
Talented team of instructors
Subscription-based revenue model
Aggressive marketing and strategic
partnership
Diversification
High initial costs
Limited market penetration initiated
by pricing strategy.
Heavy dependence on subscription
revenue,
Product reliability and safety
concerns,
Heavy reliance on instructor
personalities,
Limited physical presence, and
Evolving market landscape
OPPORTUNITIES
THREATS
Market Expansion and Penetration
Diversification of Product Offerings
Expanding Digital Content Library
Strategic Partnerships
Special Events
Leveraging Data Analytics
Intensifying Competition
Evolving Consumer Preferences and
Trends
Regulatory and Legal Challenges
4. Supply Chain Disruptions and
Manufacturing Challenges
5. Dependency on Digital
Infrastructure and Technological
Risks
6. Economic Downturns and
Consumer Spending Habits
7. Negative Publicity and Social
Media Backlash
Figure 3: SWOT analysis of Peloton
12
2. INVESTIGATING SITUATION: PRIOR RESEARCH
As a way of investigating the situation at Peloton, the suitable method adopted was
the prior research available on Pereira, (2023), considering the daunting task of
other approaches. The Business model captures nine key segments that defines
the Peloton interactive.
2.1 Customer Segments
The customer base of the organization is made up of
Fitness enthusiasts: Targeting 60% of their customer demographic aged
24-44, with only 2% over 65.
Well-known people and other prominent figures in society.
Tech-savvy individuals.
2.2 Value Propositions
Which aimed at customers satisfaction creates.
Instructor-led Workout experience
Interactive and entertaining Workout Session
Enhanced Customer Experience
Convenience-based workout
2.3 Channels: Website, App, social media, Real studios, and showrooms,
2.4 Customer relations: content promotion, social media advertising, independent
service, and fitness club
2.5 Revenue Streams: Sales of clothing, accessories, technology, and exercise
gear plans for monthly subscriptions
2.6 Key Resources
Personal trainers
Personnel
Media partnerships
Equipment
Facilities and studios
Digital content
13
Application
Online visibility
2.7 Key Activities:
Fitness instruction courses; celebrity classes; manufacturing; delivery; marketing,
branding, and content production; sales; customer support; fitness instruction
classes; unique events
2.8 Key Partners
Instructors
Manufacturing and logistic companies
Record labels
2.9 Cost Structure: Payroll and teacher expenses; administrative and running
expenditures; maintaining physical infrastructure; branding and
marketing; shipping.
2.1 Competitors
Life Fitness: Manufacturer and distributor of fitness equipment with a focus
on treadmills and stationary bikes.
SoulCycle: Equinox Group-owned fitness brand that offers indoor cycling
and spinning sessions.
NordicTrack: is a fitness equipment manufacturer that produces ellipticals,
exercise bikes, treadmills, strength training equipment, and other fitness
accessories.
Bowflex: a Vancouver-based manufacturer of exercise equipment.
14
3 STAKEHOLDERS ANALYSIS
The stakeholder’s analysis for Peloton interactive plc was performed by plotting or
categorising the stakeholders across the four quadrants of who to monitor, actively
engage, Keep Informed, and Keep Satisfied suing the Power/Interest grid. See figure
4.
i. High Power - High Interest: The decision-makers among stakeholders are
categorised here as those whose influence on the activity is so significant that
their expectations determine its continued existence.
ii. High Power - Low Interest: These categories of stakeholders are not too keen
on the activities as much as they on the output but have a considerable
influence over its implementation. Such stakeholders must be kept satisfied.
iii. Low Power High Interest: these categories of stakeholders need to
be informed regularly and properly, to avoid severe difficulties, as their impact
can go a long way to influence the activity negatively
iv. Low Power - Low Interest: this category consists of entities that must be
watched on a regular basis and must be avoided by excessive communication.
15
KEEP SATISFIED
MANAGE CLOSELY
Cloud service providers
Shareholders
Manufacturers
CEO
Logistic Companies
Music Label
MONITOR
KEEP INFORMED
Staff members (Instructors)
Investors and Partners
Customers
Low
High
Figure 4: Power interest grid of stakeholders
Interest
Power
16
4 NEEDS ANALYSIS
The needs analysis will be performed in the following phases.
A. Understanding the short- and long-term goals
The strategic objectives as highlighted earlier is.
I. To consistently add new subscribers.
II. To provide interactive elements that improve ties within the community.
III. To provide the greatest fitness material available.
IV. Creating novel items and modernising existing ones to meet industry
requirements.
V. And to increase the company's market share and geographic reach.
B. Identifying the desired performance effort
From the strategic objective, Peloton expects to grow her subscription
continuously and to expand the company’s geographical spread.
C. Examining the current performance
Peloton's revenue declined by 30% in Q3 2021 (Quarterly Results, 2021)
Net subscriber additions dropping to near zero losing 3 million connected
fitness subscription as seen in figure 2.
The company’s market capitalization has dropped from almost $50 billion to
$3.0 billion.
17
Figure 5: Peloton Subscriber Growth Ebbs (Richter, 2022)
18
5 BUSINESS PROCESS MODELLING
Having the understanding that the current performance is short of the expected goal
with drop in earnings, membership subscription and market capitalization, a view of
the company’s business model will throw light into the processes involved. To do this,
Peloton business model canvas will be sued to x-ray the key actors, activities, and
their interactions with one another. Figure 6 below is the Peloton Business canvas.
19
Figure 6: The Peloton Business model (Source: Pereira, (2023)).
20
6 DEFINING SOLUTION
The customer subscription drop post pandemic could be explained from the customers
lifestyle change after the pandemic. Recall that during the pandemic so many activities
were reduced due to the lockdown. This activity became a priority activity; however, it
was different post pandemic, and this will affect the financial commitment of subscribers
as well. To restore this growth, a few changes are being introduced in this proposed model
for Peloton as shown in Figure 7.
The model introduces changes to key segments like customer segment, value
proposition, partners and all three will in turn affect the revenue segments.
Value Proposition: In its policy marketing drive, we are introducing additional benefits
that subscribers will benefit from, which are.
i. Promoting an all year- and all-round total wellness lifestyle, through
advertisement, counselling, seminars, and conferences
ii. Wearable devices will make it easier for the now mobile subscribers
to incorporate fitness activities into their upwardly mobile lifestyle.
iii. Incorporate the option to choose an instructor.
Customer segment: The customer segment will expand further from just the middle -
high end earners, celebrities, and tech savvy customers to also include community of
people looking now for total wellness irrespective of their class.
Revenue Stream: From the new introductions, the organization will add at least two
streams of income.
i. Sales of wearable devices.
ii. Free registrations after purchasing a wearable device.
Partnership: Partnership with hotels and clubs will help to open-up more service outlets
and ad earnings from both equipment sales and subscriptions
21
Figure 7: Proposed Business canvas model
22
7 COMMENTS, OBSERVATIONS AND RECOMMENDATIONS
7.1 Comments and Observations
Peloton’s target audience as it is shown from its business model indicates that it is
towards fitness enthusiast and mid high income earners. However, a careful
observation shows that the entry level power bike price is $2,495, which indicates that
the actual target audience is the high-income households, considering this excessive
cost of owning a peloton. What this has done is to restrict a larger number of
populations that would wish to own a peloton from owning one. Second, being a major
beneficiary from the covid 19 lockdown, Peloton’s responds to the demand surge were
way above the demand with the investment of $420 billion in the purchase of the
fitness machine making company Precor, shortly before the lockdown was eased.
This resulted to having more equipment, than the market demand for it.
7.2 Recommendations
The following measures can address the inadequacies so identified and more.
1. There needs to be a pricing review that will accommodate more people. The
shortfall in profits from sales can be shifted to fee for personalized fitness
instructors and subscriptions from other partnering organizations like hotel and
clubs.
2. Subsequently, it is recommended that a careful study of the demand stability
be carried out before making serious investments to address the demands.
23
PART 2: BUSINESS DATA ANALYSIS
INTRODUCTION
In this session of this assessment the data analysis of a business data is carried out,
either from same company being investigated in Part one of the report or a tutor-
approved dataset chosen from a list. In this part of my study, business data from same
company, which in this case is Peloton Interactive Inc., has being used. The dataset
which has been retrieved from Kaggle is accessible with the link: CStevens Peloton
Data (kaggle.com). The data is comprised of 21 attributes (columns) and 3737 rows.
These attributes of the datasets are, 'Workout_ID', 'Workout_Timestamp',
'Workout_Date', 'Workout_Day', 'Workout_Time', 'Live_OnDemand',
'Instructor_Name', 'Co_Instructor', 'Length', 'Fitness_Discipline', 'Type', 'Total_Output',
'Avg_Watts', 'Avg_Resistance', 'Avg_Cadence', 'Avg_Speed', 'Distance',
'Calories_Burned', 'Avg_Heartrate', 'Avg_Incline', and 'Avg_Pace'.
This report covers introduction, Research questions, Business insight, Comments,
observations, and recommendations, and conclusions.
Research Questions
To get the analysis, the following research questions have been identified.
i. Which activity contributes most to the total output?
ii. What are the key influences of total output?
iii. What are the key influencers of live-OnDemand?
iv. Is there any significant difference between calories burned
and the fitness discipline?
v. In what day of the week is the highest total output?
vi. Which instructor has the highest output?
vii. Are the instructors performing uniformly across board?
viii. What is the total output and total calories burned by live-
demand?
ix. What is the daily workout peak period?
24
8 BUSINESS INSIGHT
The analysis performed on the data set to gain insight was conducted using Power BI
and python tools for both statistical analysis and visualization.
8.1 Total output
For the three-year period covered in the dataset, the total output is 153,099 while the
total calorie burned is 402,740 (Figure 8).
Figure 8: Showing the total output, calorie burned and workout for three years.
Further investigations shows that the year 2022 had a higher concentration of outputs
when compared to 2021 and 2023 (Figure 9), suggesting that more workouts had
occurred in this period above 2021, 2023, while it was lowest in 2020.
Figure 9: total output spread per period
25
The contributing parameters to the total output can further be assessed to give an
insight into the activities that have contributed the most to the total output recorded
within these periods. The heatmap shown in Figure 10 shows that there is a
remarkably high correlation between Calories burned and Total output, and between
Distance covered and total output. The collinearity chart further highlights that the
output and calories burned are positively interdependent such that while calories
burned increases, the total output also increases correspondingly.
Figure 10: Heatmap and regression graph
Other factors that could predict increase in the total output were analysed. These
influencers were categorized in the order in which they could increase the total output,
Below the top three categories that will predict an increase total output as shown in
figure 11, 12 and 13.
1. Total output is likely to increase when the type is Hiking, as Hiking has
contributed a total output of 272.4 higher than any other values of type.
2. When it is walk and run, the total out is 226.4 higher than otherwise.
3. When the instructor’s name is Kirsten Ferguson, the total output is 197 higher
than others and it is likely to increase.
26
Figure 11: Total Output first key influencer
Figure 12: Total Output second key influencer
Figure 13: Total Output third key influencer
27
8.2 Live On Demand Performance review.
Live On demand are two options available to customers in terms of location of their
exercise. While ‘Live’ is the physical appearance at the gym site, the on-demand use
of the Peloton services through their high-tech equipment’s and apps from the user’s
comfort base. Comparing their impact on total output and calories burned, the on
demand has higher values than the live. Which suggests that most customers find it
easier to exercise by owning their Peloton equipment. Obviously, more calories were
burned from the On-demand exercise with highest result arising from Cycling, Walking
Running fitness discipline respectively (Figure 14). This comparison is restricted to
exercises that are done in both locations because there are others that can only be
done Live, that is why analysis of the key influencers (Figure 15, 16 and 7) indicates
that.
i. As calories burned decreases, the likelihood of live on-demand being On-
demand increases (2.16times).
ii. When the instructor is Andy Speer the live on-demand is 1.16 times going
to be On-demand.
iii. When the output is 6-61 it is likely going to be On-demand
Figure 14: Total Output and Calories Burned by Live On-demand
28
Figure 15: Live On-demand influencer 1
Figure 16: Live On-demand influencer 2
Figure 17: Live On-demand influencer 3
29
8.3 Impact of Instructors and Fitness Discipline
Peloton boast of celebrity instructors and prior analysis has indicated its influence on
the total output. A look at the various contributions of the instructors can be seen in
Figure 18 with Kirsten Ferguson having the highest total output, affirming while Kirsten
is the 3
rd
key influencer of total output. On the fitness discipline Strength, Cycling and
walking burned the highest calories of 28.9%, 25.38% and 23.31% respectively
(Figure 19).
Figure 18: Instructors rating per total output
30
Figure 19: Calories Burned per Fitness Discipline
8.4 Impact of workout dates and times
The knowledge of the most active periods is essential for planning and resource
allocation. This is done by reviewing amounts of calories burned and total output per
day of the week. Whereas figure 20 shows Sunday has the highest Total Output, figure
21 also affirm that more calories were burned on Sunday. Furthermore, pick workout
times of the day are between the hours of 7am 10am in the morning and 6-7pm in
the evening (Figure 22).
31
Figure 20: Total Output per workout day of the week
Figure 21: Calories burned per workout day of the week
32
Figure 22: Total workout by workout time
33
9 Comments, Observations and Recommendations
9.1 Comments, Observations
From the insights gained and noted above, calories burned contributes most to the
total output as a single activity, however other key influencers were identified,
which are either single or a combination of activities. Same applied to the options
between Live or on-demand, however, on demand recorded the most patronage
resulting in high total output and calories burned. Obviously, there were identified
differences among fitness discipline in terms of number of calories burned.
Instructor performances were also not uniform, Kirsten Ferguson being the most
productive. Finally, Sunday happened to be the most productive day of the week.
9.2 Recommendations
After the analysis and insight gained, the following recommendations are made.
i. Create a marketing option for customers to choose from the top 5
instructors for a fee to generate extra revenue.
ii. Deploy more resources to type hiking, walking, and running and prominent
instructors since they are key influencers of total output.
34
10 CONCLUSIONS
The analysis of Peloton datasets guided by 9 research questions has thrown insight
into the performance of Peloton from 2020 to 2023, identifying key areas of strength
which can further be harnessed for further growth.
35
REFERENCE
McDon, D. and Nankya, Y. 2021. A STRATEGIC ANALYSIS OF PELOTON 2.
Available
at:https://www.researchgate.net/publication/350589501_A_STRATEGIC_ANA
LYSIS_OF_PELOTON_2.
Peloton Interactive, Inc. (PTON)., 2023. Available at:
https://uk.finance.yahoo.com/quote/PTON/analysis?p=PTON [Accessed: 16
November 2023].
Pereira, D. 2023. Peloton Business Model. Available at:
https://businessmodelanalyst.com/peloton-business-model/.
Quarterly Results. 2021. Available at: https://investor.onepeloton.com/financial-
information/quarterly-results.
Richter, F. 2022. Peloton Subscriber Growth Ebbs at the Worst Possible Time.
Available at: https://www.statista.com/chart/28413/peloton-revenue-and-
subscriber-growth/.
Schultz, C. 2021a. Peloton falls further as treadmill recall reverberations continue.
Available at: https://seekingalpha.com/news/3691300-peloton-falls-further-as-
treadmill-recall-reverberations-continue%20%E2%80%9C.
Schultz, C. 2021b. Peloton Interactive stock watched closely this week ahead of key
earnings report. Available at: https://seekingalpha.com/news/3689268-peloton-
interactive-stock-watched-closely-this-week-ahead-of-key-earnings-report.
Schulze, D. 2021. Peloton: A Unique Buying Opportunity Amid Major Treadmill Safety
Concerns. Available at: https://seekingalpha.com/article/4426980-peloton-
stock-a-unique-buying-opportunity-amid-treadmill-safety-
concerns?utm_source=simplywall.st&utm_medium=referral.
36
Appendix
Power BI link:
https://app.powerbi.com/groups/me/reports/ae711e1c-0cca-4317-9593-
67652533a06b?redirectedFromSignup=1&ScenarioId=Signup&redirectedWait
Simple=1&experience=power-bi